There are different ways people perceive the term “Digital Transformation” in their lives and companies. As the world evolves, digital transformation has become a necessity rather than a luxury to stay competitive in the industry. You can hear this across every discussion, panel meeting, podcast, or lecture as the world increasingly goes digital. So, what exactly is digital transformation, and what does it imply for you or your business? Anybody is bound to get lost in the blind alley creating a definition that matches everyone’s thoughts. It takes an enormous amount of time to study, research, understand, and share the necessary guidance regarding digital transformation. We have created a 3-part series outlining the detailed answers for you. In this first article, we will define a digital transformation to a greater extent. Digitalization
has provided us with complications as well as simplifications. The pandemic was labeled as an innovative invention that helped humans endure their lives even in times of crisis.
LET’S SOLVE THIS PUZZLE OF “DIGITAL”
So, what is the source of this anguish? The most severe issue is our perception of the term. There is no precise definition of “digital” in the study of organizational transformation. Find the time to consider what the word means to you. You can assess how other businesses and countries define it and how they relate it to their organizations’ jobs, tasks, procedures, and activities. For instance, “digital” could imply:
- automating processes
- cloud data storage and processes
- machine-learning or AI mechanisms
- data analysis and programming
- the flexibility of working remotely
Digitization is more than just implementing new technology into your organizational processes, irrespective of how you describe “digital.” Digital implementations can help you make substantial changes to your company’s strategy and processes through digital transformation. It involves replacing inefficient and costly operations with more optimal and cost-effective applications – to cite an example, replacing human clerical work with electronic data collection. Businesses have been on digital transformation
paths for several years to combat the threat of competition from entrepreneurs and startups, but progress has been weak – until the epidemic. To enable shoppers to receive orders safely, firms like Walmart and Bed Bath & Beyond shook up daily operations by improvising doorstep deliveries and other contactless services. Meanwhile, IT professionals re-prioritized their strategic IT guidelines, with many embracing cloud software for video collaboration and installing machine learning (ML) software to help companies monitor how items move through supply chains. Digital transformation necessitates a business culture prepared to experiment with new technology, reject obsolete processes, and, most crucially, accept failure as a core element of the improvement process.
DIGITAL TRANSFORMATION COMES IN 4 FLAVORS
To summarize, any transformational change must consequentially result in long-term valuations. According to our study and expertise, you must embrace not one but four types of digital transformation to contribute to the enhancement of your digital restructuring:
In a hyper-connected world, where constructing the appropriate connections is critical, digital transformation is a journey with multiple intermediate goals. You consistently work to simplify and optimize the systems throughout operations, departments, and across the business ecosystem. Neglecting this resourceful approach to digital transformation, you might end up limiting the growth potential your company or organization has. Let us take a closer look at each sort of transformation to help you seize those chances.
BUSINESS PROCESS TRANSFORMATION
The latest innovative tools, data analysis & interpretation, artificial intelligence in businesses, and modern technologies can substitute or update the time-consuming, vulnerable to errors, and high-cost operations across your firm. To cite an example, opting for an automated end-to-end data processing solution offered by HubBroker
can revolutionize your procurement processes and transform them into a revenue generator and direct its potential on other obligatory operations. Corporations that produce revenue by selling physical assets are evolving into service firms that rely on data as an asset, resulting in innovative business models. Process digitization has little to do with equipment and more to do with how businesses approach innovation. While many people think of automation as a massive project centered on a single platform, digital leaders offer results focusing on tiny but critical solutions to tackle high-value customer experiences and aspirations (for example, real-time availability and personalized practices).
BUSINESS MODEL TRANSFORMATION
The goal of business model transformation is to change how innovation develops throughout an industry. Apple (music distribution), Netflix (video distribution), and Uber (taxis) are all examples of these successes. It is a more sophisticated type of transformation that involves involvement and collaboration from multiple departments. Businesses that reach the expected business model transformation develop a new earning potential by modifying the foundational components of value. More companies can expand in their fields using this approach.
The need for companies to remain flexible is what leads to long-term success. Businesses often overlook domain transformation, yet it promises to gain a competitive advantage. According to Annacone, technological advancements are “reinventing solutions, disintegrating industry borders, and creating completely new sets of non-traditional competitors.” Amazon, for example, joined the cloud technology / IaaS market with Amazon Web Services (AWS), which was formerly dominated by IT behemoths such as IBM and Microsoft. You don’t need huge investments and exceptional marketing to reach new boundaries in diverse market spaces. The technology required to do so is readily available and reasonably priced. This company-wide endeavor requires a significant degree of military thinking and C-suite backing, similar to business model transformation.
Finally, you need to evaluate the digital capabilities in terms of your company’s culture. Agile processes, willingness to test and learn from failure, distributed decision-making, and increased reliance on business ecosystems are vital to cultural transformation. Developing these capabilities isn’t a prerequisite but more a result of successful digital transformation projects.
DIGITAL TRANSFORMATION IN THE TIME OF COVID-19
If all this leaves you feeling like you’re falling behind, don’t sweat. One of the biggest misconceptions among Executives about digital transformation
is that all of their rivals are well ahead of them. That’s because there’s much appreciation for (and favorable coverage involving) the quickest transformers but little criticism of how complex transformation is or how long it would take for a regular Global 2,000 organization. The coronavirus outbreak has made it excruciatingly evident for many businesses that digital transformation is critical to their sustainability. As we’ve seen, this entails a lot more than just throwing a bunch of programs into different mechanisms. For starters, digital transformation projects demand strategic planning, C-suite buy-in, and cross-organizational cooperation. Simultaneously, the requirement for speed is more significant than it was in The Before Time. Businesses have been on digital transformation paths for several years to combat the threat of competition from entrepreneurs and startups, but progress has been slow – until the epidemic. To enable shoppers to receive their items safely, firms like Walmart and Bed Bath & Beyond shook up daily operations by transitioning to doorstep deliveries and other contactless services. Meanwhile, IT professionals re-prioritized their strategic IT guidelines, with many embracing cloud software for video collaboration and installing machine learning (ML) software to help companies monitor how items move through supply chains. Based on your company’s culture, the first actions of digital transformation don’t get as time-consuming as they appear. Begin by taking an innovative approach to creating your digital projects, and be willing to try new things and learn from your mistakes. HubBroker’s digital transformation services helps our client streamline their operations using business process automation. Connect with us
today to know we can help you achieve tangible outcomes and establish business agility through our optimized solutions.